Types of Wildfire Damages You Can Claim

After a wildfire, many victims assume that insurance will cover all their losses — but in reality, insurance policies often fall far short. That’s where third-party wildfire claims come in. These claims allow individuals and businesses to recover damages from those responsible for starting or failing to contain the fire.

So what kinds of damages can you claim? Let’s break them down.

1. Property Loss

Property loss refers to damage to real property — everything that’s fixed to the ground. This includes your home, fences, garages, sheds, and other permanent structures.

Insurance coverage for these items is often limited. For example, if your home and other structures are valued at $500,000 but your insurance only pays $300,000, you may be able to claim the remaining $200,000 through a third-party wildfire claim.

2. Personal Property Loss

Personal property includes your home goods, personal belongings, furniture, clothing, collectibles, and valuables.

In wildfire claims, we look at the full value of what was lost. For example, if the total value of your personal property is $200,000 but your insurance only covers $50,000, that $150,000 shortfall may be recoverable.

Of course, every claim must be supported by evidence. We work with you to document and prove your losses — it’s not about guessing or “throwing a number out there,” but about showing the true scope of your damage.

3. Loss of Use/Alternate Living Expenses (ALE)

Loss of use/ALE represents the expenses you incur because your home is uninhabitable due to a covered loss event. Covered expenses are generally the difference between your pre-fire costs and temporary costs. You may receive reimbursement for rent for temporary housing, extra food costs other than the usual grocery bill, pet boarding costs, and so on. See this United Policyholders article for the list on what previous loss survivors have received reimbursement for.

Insurance policies typically limit these benefits to a two-year period. But in many wildfire cases, it takes much longer to rebuild or find permanent housing. That’s why we claim what’s reasonable under the circumstances — sometimes three or four years of loss of use — depending on the unique situation for third-party wildfire claims.

4. Personal Loss

This category includes the deeply personal and emotional toll of a wildfire. It can cover:

• Personal injury or wrongful death

• Mental suffering related to evacuation or the loss of cherished items

• Emotional distress from being unable to return home

• Disturbance and annoyance caused by fire recovery efforts

• Loss or injury to animals and pets

These damages recognize that not all losses are financial — many are emotional and life-altering.

5. Business and Income Loss

For business owners, we work with financial experts to evaluate losses using profit and loss statements, tax records, and projections.

These claims can include:

• Lost profits due to business interruption

• Damage to business property or equipment

• Reduced income from long-term operational disruption

Final Thoughts

Wildfire claims are complex, and every case is different. The key is understanding that your insurance payout is just the beginning. If a third party — such as a utility company — is responsible for the fire, you may be entitled to recover far more than what your insurance covers.

Our role is to help you prove, document, and recover the full scope of your losses, so you can rebuild not just your home or business, but your life.